Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area home sales totaled 190 units during June, up 1.6% from 187 sales in the same month a year earlier. June home sales were down 8.2% from May 2019’s 187 units. Results were 13.8% above the five-year June average of 167 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Shoals-area housing data, click here.
Inventory: Homes listed for sale in the Shoals area during June totaled 840 units, a decrease of 8.4% from June 2018’s 917 units. Shoals-area inventory experienced a 0.6% decrease from May 2019. The area also experienced a year-over-year decline in months of supply. June months of supply totaled 4.4 months, a decrease of 9.8% from June 2018’s 4.9 months. June months of supply increased 8.3% from May’s 4.1 months of supply.
Pricing: The Shoals-area median sales price in June was $135,450, an increase of 0.4% from one year ago and a 5.8% increase from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 1.6%. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in June spent an average of 69 days on the market (DOM), down 8% from June 2018 and down 12.7% from May 2019.
Forecast: June sales were 13 units, or 7.3 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 177 sales for the month, while actual sales were 190 units. ACRE forecast a total of 903 residential sales in the Shoals area year-to-date, while there were 987 actual sales through June.
ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during May spent an average of 88 days on the market, an improvement of 12 days from May 2018.
NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
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The Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.